Microsoft, Nintendo and Sony have since missed out on the rapid growth of gaming in the country.

The industry generated revenues of $13bn (£8bn) in 2013, a 38% jump from a year ago.

But majority of that is dominated by PC gaming, not least because of the ban on games consoles.

However, earlier this year China said that it would allow foreign firms to make consoles within Shanghai's free-trade zone and sell them in China after inspection by cultural departments.

"Creators and gamers alike have eagerly awaited a new generation of entertainment experiences in China, and their wait will be over with the arrival of Xbox One this year," said Enwei Xie, who will head Xbox China for Microsoft.

The two firms said they would also launch an programme that will enable creators and developers to build, publish and sell their games on Xbox One in China as well as in other markets where Xbox is available.

"The opportunities are endless for creators to unleash their imaginations for games, online education and fitness experiences for China and beyond," said Mr Xie.